Kansas could save about $22.5 million annually by changing how it reimburses schools for Medicaid-funded healthcare services, according to a recent audit by Kansas Medicaid Inspector General Steven D. Anderson. The report recommends shifting reimbursement responsibilities from the state to Medicaid Managed Care Organizations (MCOs), which already receive monthly payments for Medicaid beneficiaries. Currently, schools receive separate fee-for-service payments from the state for some of those same students. Using MCO payments instead would reduce redundant spending and eliminate the need for the state to process those claims.

The audit also found problems with billing practices. One school submitted claims using an invalid National Provider Identifier (NPI) belonging to a former business director with no medical credentials. That NPI appeared on 77% of claims and resulted in $390,542.98 in payments.

Another concern was the lack of background checks for school-based Medicaid providers. Of 231 providers reviewed, only 72 had proof of completed background checks.

The audit included 12 findings and 47 recommendations aimed at improving oversight and saving taxpayer dollars. The report was submitted to state leaders, including the Attorney General, Health Secretary, Education Commissioner, and the Joint Committee on Home and Community Based Services and KanCare Oversight.